Exclusively from the income and revenues of certain designated housing projects whether or not they were financed in whole or in part with the proceeds of the bonds.
Any of the bonds under subd. 1.
may be additionally secured by a pledge of any revenues or, subject to the limitations imposed under pars. (b)
, a mortgage of any housing project, projects or other property of the authority.
Neither the commissioners of the authority nor any person executing the bonds is liable personally on the bonds by reason of their issuance.
The bonds and other obligations of the authority are not a debt of any municipality located within its boundaries or of the state and this fact shall be stated on their face. Neither the state nor any municipality is liable for the bonds or other obligations, nor are they payable out of any funds or properties other than those of the authority.
Bonds of an authority shall be authorized by its resolution and may be issued in one or more series and shall bear any date, mature at any time, bear interest at any rate, be in any denomination, be in the form of coupon bonds or of bonds registered under s. 67.09
, carry any conversion or registration privileges, have any rank or priority, be executed in any manner, be payable in any medium of payment, at any place, and be subject to any terms of redemption, with or without premium, that the resolution, its trust indenture or mortgage may provide. Any bond reciting in substance that it has been issued by an authority to aid in financing a housing project to provide dwelling accommodations for persons of low income shall be conclusively deemed, in any suit, action or proceeding involving the validity or enforceability of the bond or the security for the bond, to have been issued for such a housing project. Bonds of an authority are issued for an essential public and governmental purpose and are public instrumentalities and, together with interest and income, are exempt from taxes.
The bonds may be sold at public or private sale as the authority provides. The bonds may be sold at any price determined by the authority.
The authority may purchase, out of available funds, any bonds issued by it at a price not more than the principal amount of the bonds and the accrued interest. Bonds payable exclusively from the revenues of a designated project or projects shall be purchased only out of any revenues available for that purpose. All bonds so purchased shall be canceled. This paragraph does not apply to the redemption of bonds.
Any provision of any law to the contrary notwithstanding, any bonds, interim certificates, or other obligations issued pursuant to ss. 66.1201
are fully negotiable.
Provisions of bonds, trust indentures, and mortgages.
In connection with the issuance of bonds or the incurring of any obligation under a lease and in order to secure the payment of bonds or obligations, the authority may:
Pledge by resolution, trust indenture, mortgage, subject to the limitations in this subsection, or other contract any of its rents, fees, or revenues.
Covenant against mortgaging any of its property or against permitting any lien on its property.
Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any housing project or any part of a housing project, or with respect to limitations on its right to undertake additional housing projects.
Covenant against pledging any of its rents, fees and revenues or against permitting any lien on its rents, fees and revenues.
Provide for the release of property, rents, fees and revenues from any pledge or mortgage, and reserve rights and powers in, or the right to dispose of, property which is subject to a pledge or mortgage.
Covenant as to the bonds to be issued pursuant to any resolution, trust indenture, mortgage or other instrument and as to the issuance of bonds in escrow or otherwise, and as to the use and disposition of the proceeds of the bonds.
Provide for the terms, form, registration, exchange, execution and authentication of bonds.
Provide for the replacement of lost, destroyed or mutilated bonds.
Covenant that the authority warrants the title to the premises.
Covenant as to the rents and fees to be charged, the amount to be raised each year or other period of time by rents, fees and other revenues and as to the use and disposition to be made of the revenues.
Create special funds which segregate all of the following:
Any moneys held for the payment of the costs of operations and maintenance of any housing projects or as a reserve for the meeting of contingencies in the operation and maintenance of housing projects.
Any moneys held for the payment of the principal and interest on its bonds or the sums due under its leases or as a reserve for the payments.
Covenant as to the use and disposal of the moneys held in funds created under par. (L)
Redeem the bonds, covenant for their redemption and provide the terms and conditions of the bonds.
Covenant against extending the time for the payment of its bonds or interest on the bonds by any means.
Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to a contract amendment or abrogation and the manner in which consent may be given.
Covenant as to property maintenance, replacement and insurance and the use and disposition of insurance moneys.
Vest in an obligee of the authority, if the authority fails to observe or perform any covenant on its part to be kept or performed, the right to cure any default and to advance any moneys necessary for that purpose. The moneys advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture, mortgage, lease or contract of the authority.
Covenant and prescribe as to the events of default and terms and conditions upon which any of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which the declaration and its consequences may be waived.
Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation.
Covenant to surrender possession of all or any part of any housing project upon the happening of a default, as defined in the contract, and to vest in an obligee the right to take possession and to use, operate, manage and control housing projects, and to collect and receive all rents, fees and revenues arising from the housing projects in the same manner as the authority itself might do and to dispose of the moneys collected in accordance with the agreement of the authority with the obligee.
Vest in a trust the right to enforce any covenant made to secure, to pay, or in relation to the bonds, to provide for the powers and duties of a trustee, to limit liabilities of a trustee and to provide the terms and conditions upon which the trustee or the bondholders or any proportion of them may enforce any covenant.
Make covenants other than the covenants that are authorized in this subsection.
Execute all instruments that are necessary or convenient in the exercise of its powers or in the performance of its covenants or duties.
Make covenants and do any act necessary or convenient in order to secure its bonds, or, in the absolute discretion of the authority, that tend to make the bonds more marketable. An authority may not mortgage any of its property except as provided in sub. (16)
Power to mortgage when project financed with aid of government. 66.1201(16)(a)(a)
In this subsection, “government" includes the Wisconsin Housing and Economic Development Authority.
In connection with any project financed in whole or in part, or otherwise aided by a government, whether through a donation of money or property, a loan, the insurance or guarantee of a loan, or otherwise, the authority may do any of the following:
Issue its note or other obligation as may be required by the government.
Remedies of an obligee of authority.
An obligee of the authority, subject to its contract, may do any of the following:
By mandamus, suit, action or proceeding, all of which may be joined in one action, compel the authority and its commissioners, officers, agents or employees to perform every term, provision and covenant contained in any contract of the authority, and require the carrying out of any covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by ss. 66.1201
By suit, action or proceeding enjoin any unlawful acts or things, or the violation of any of the rights of the obligee of the authority.
By suit, action or proceeding cause possession of any housing project or any part of a housing project to be surrendered to any obligee having the right to possession pursuant to any contract of the authority.
Additional remedies conferrable by mortgage or trust indenture.
Any authority may by its trust indenture, mortgage, lease or other contract confer upon any obligee holding or representing a specified amount in bonds, lease or other obligations, the right upon the happening of an “event of default" as defined in the instrument:
By suit, action or proceeding obtain the appointment of a receiver of any housing project of the authority or any part of a housing project. Upon appointment, a receiver may enter and take possession of the housing project or any part of the housing project and operate and maintain it, and collect and receive all fees, rents, revenues or other charges arising in the same manner as the authority itself might do. The receiver shall keep the moneys in a separate account or accounts and apply the moneys in accordance with the obligations of the authority as a court directs.
By suit, action or proceeding require the authority and its commissioners to account as if it and they were the trustees of an express trust.
All the rights and remedies in this section are in addition to all other rights and remedies that may be conferred upon an obligee of the authority by law or by any contract with the authority.
Subordination of mortgage to agreement with government.
The authority may agree in any mortgage made by it that the mortgage is subordinate to a contract for the supervision by a government of the operation and maintenance of the mortgaged property and the construction of improvements on the mortgaged property. A purchaser at a sale of the property of an authority pursuant to a foreclosure of a mortgage or any other remedy in connection with the foreclosure shall obtain title subject to the contract.
Contracts with federal government.
In addition to the powers conferred upon the authority by other provisions of ss. 66.1201
, the authority may borrow money or accept grants from the federal government for any housing project that the authority may undertake, take over any land acquired by the federal government for the construction or operation of a housing project, take over or lease or manage any housing project constructed or owned by the federal government, and to these ends, enter into any contracts, mortgages, trust indentures, leases or other agreements that the federal government may require including agreements that the federal government may supervise and approve the construction, maintenance and operation of the housing project. A council may take any action necessary to secure the financial aid and the cooperation of the federal government in the undertaking, construction, maintenance and operation of any housing project which the authority may undertake.
Tax exemption and payments in lieu of taxes.
Tax exemption and payments in lieu of taxes. The property of an authority is public property used for essential public and governmental purposes and the property and an authority are exempt from all taxes of the state or any state public body, except that the city in which a project or projects are located may fix a sum to be paid annually in lieu of taxes by the authority for the services, improvements, or facilities furnished to the property of the authority by the city. The amount paid in lieu of taxes may not exceed the amount that would be levied as the annual tax of the city upon the project. Property of an authority includes property in which an authority operating within a 1st class city or an entity in which an authority operating within a 1st class city holds an ownership interest holds a partial ownership interest if the property is held for any of the following purposes:
As part of a financing or equity plan that includes state or federal tax credits, financing, funding, or rent subsidy.
A purpose related to the conversion of a housing project to a rental or housing assistance program under a contract with the federal government.
The authority shall at least once a year file with the mayor of the city a report of its activities for the preceding year.
When a housing authority has the approval of the council for any project authorized under sub. (9) (a)
, the authority shall complete and approve plans, specifications, and conditions for carrying out the project, and shall advertise by publishing a class 2 notice, under ch. 985
, for bids for all work which the authority must do by contract. The authority is not required to submit for bidding any contract in an amount of $25,000 or less or, if the contract is for a project on a property wholly or partially owned before October 1, 2021, by a housing authority created by a 1st class city, $50,000 or less, but if the estimated cost of the contract, except a contract for a project on a property wholly or partially owned before October 1, 2021, by an authority created by a 1st class city, is between $10,000 and $25,000, the authority shall give a class 2 notice, under ch. 985
, of the proposed work before the contract is entered into. A contract subject to bidding shall be awarded to the lowest qualified and competent bidder. Section 66.0901
applies to the bidding.
As an alternative to the advertising and bidding procedure under par. (a)
, an authority may contract under any purchase procedure authorized for the authority by the federal government.
An authority may contract for the acquisition of a housing project without submitting the contract for bids as required by par. (a)
if all of the following apply:
The contract provides for undertaking of the housing project on land not owned at the time of the contract by the authority except the contract may provide for undertaking of the housing project on land acquired and owned by a community development authority for the purpose of ss. 66.1105
if the community development authority is proceeding under this paragraph as provided by s. 66.1335 (4)
The contract provides for conveyance or lease of the project to the authority after completion of the project.
The authority invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design, the developer's experience and other criteria specified by the authority.
Liquidation and disposal of housing projects. 66.1201(25)(a)
In any city or village the council or village board by resolution or ordinance, or the electors by referendum under s. 9.20
, may require the authority to liquidate and dispose of a project held and operated under ss. 66.1201
If liquidation and disposal of a project is provided for under par. (a)
the housing authority or other designated agency shall sell the project to the highest bidder after public advertisement, or transfer it to any state public body authorized by law to acquire the project. No project may be sold for less than its fair market value as determined by a board of 3 licensed appraisers appointed by the council or village board.
The arrangements for the liquidation and disposal of a project shall provide for the payment and retirement of all outstanding obligations in connection with the project, together with interest on the obligations and any premiums prescribed for the redemption of any bonds, notes or other obligations before maturity.
Any proceeds remaining after payment of the obligations under par. (c)
shall be distributed in accordance with the federal law applicable at the time of the liquidation and disposal of the project. If no federal law is applicable to the liquidation and disposal of the project all remaining proceeds shall be paid to the city or village.
If the highest bid received is insufficient for the payment of all obligations set forth in par. (c)
the project shall not be sold unless the city or village provides sufficient additional funds to discharge the obligations.
In order to carry out this subsection an authority or other designated agency shall exercise any option available to it for the payment and redemption of outstanding obligations set forth in par. (c)
before maturity, if the city or village provides funds for payment and redemption.
No actions taken under this subsection shall affect or diminish the rights of any bondholders or other obligees of the authority.
In this subsection, “
outstanding obligations" or “obligations" includes bonds, notes or evidences of indebtedness, as well as aids, grants, contributions or loans made by or received from any federal, state or local political government or agency.
Dissolution of housing authority.
Any housing authority may be dissolved upon adoption of an ordinance or resolution by the council or village board concerned declaring that the need for the authority no longer exists, that all projects under the authority's jurisdiction have been disposed of, that there are no outstanding obligations or contracts and that no further business remains to be transacted by the authority.
History: 1973 c. 172
; 1975 c. 94
; 1977 c. 418
; 1979 c. 89
; 1979 c. 110
s. 60 (13)
; 1979 c. 221
; 1981 c. 112
; 1983 a. 24
; 1983 a. 81
; 1983 a. 83
; 1983 a. 189
; 1987 a. 27
; 1991 a. 316
; 1993 a. 172
; 1995 a. 27
; 1997 a. 35
; 1999 a. 150
; Stats. 1999 s. 66.1201; 2001 a. 103
; 2005 a. 22
; 2009 a. 95
; 2015 a. 196
; 2017 a. 316
; 2021 a. 196
; s. 35.17 correction in (9) (am), (24) (a).
The office of county planning and zoning commission member is incompatible with the position of executive director of the county housing authority. 81 Atty. Gen. 90
Housing authorities; operation not for profit. 66.1203(1)(1)
It is declared to be the policy of this state that each housing authority shall manage and operate its housing projects in an efficient manner to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that no housing authority shall construct or operate any project for profit, or as a source of revenue to the city.
An authority shall fix the rentals for dwellings in its projects at no higher rates than it finds necessary in order to produce revenues which, together with all other available moneys, revenues, income and receipts of the authority from whatever sources derived, will be sufficient to accomplish all of the following:
Pay, as the rentals become due, the principal and interest on the bonds of the authority.
Meet the cost of, and provide for, maintaining and operating the projects, including the cost of any insurance, the administrative expenses of the authority, and, for projects located on properties wholly or partially owned before October 1, 2021, by a housing authority created by a 1st class city, tenant support services.
Create, during not less than the 6 years immediately succeeding its issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on the bonds in any one year after the creation of the reserve and maintain the reserve.
History: 1999 a. 150
; Stats. 1999 s. 66.1203; 2021 a. 196